Innovation and product positioning: When to add or replace

IF 6.7 2区管理学 Q1 MANAGEMENT

Omega-international Journal of Management Science Pub Date : 2025-04-15 DOI:10.1016/j.omega.2025.103327

Anne G. Balter , Cláudia Nunes , Diogo Pereira , Peter M. Kort

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引用次数: 0

Abstract

We consider a monopolist firm, currently active in the market, which has the opportunity to innovate by introducing a new product. This involves decisions about the timing, quality, and positioning relative to the established product. To study this problem, we use the Hotelling line model. Moreover, we introduce demand uncertainty. The main result is that when the established product is sufficiently profitable, it will be replaced by the new product in the long run. This result is reinforced by demand uncertainty, which delays the new product introduction. Adding the new product alongside the established product so that they are both available for sale after the new product is introduced, may occur when the unit production cost of the new product is small. In the latter scenario, a hysteresis region may arise where the firm waits, while at lower demand levels, it immediately adds the new product alongside the established product, and at higher demand levels it immediately replaces the established product with the new one.

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创新与产品定位：何时添加或替换

我们考虑一个垄断公司，目前在市场上很活跃，它有机会通过引入一种新产品进行创新。这涉及到与既定产品相关的时间、质量和定位的决策。为了研究这个问题，我们使用了Hotelling线模型。此外，我们引入了需求不确定性。主要的结果是，当既定的产品有足够的利润时，从长远来看，它将被新产品所取代。需求的不确定性进一步强化了这一结果，从而推迟了新产品的推出。当新产品的单位生产成本较小时，可以将新产品与现有产品一起添加，以便在新产品推出后同时可供销售。在后一种情况下，公司等待的地方可能会出现滞后区域，而在较低的需求水平下，它会立即将新产品与已建立的产品一起添加，在较高的需求水平下，它会立即用新产品替换已建立的产品。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Omega-international Journal of Management Science 管理科学-运筹学与管理科学

CiteScore

13.80

自引率

11.60%

发文量

130

审稿时长

56 days

期刊介绍： Omega reports on developments in management, including the latest research results and applications. Original contributions and review articles describe the state of the art in specific fields or functions of management, while there are shorter critical assessments of particular management techniques. Other features of the journal are the "Memoranda" section for short communications and "Feedback", a correspondence column. Omega is both stimulating reading and an important source for practising managers, specialists in management services, operational research workers and management scientists, management consultants, academics, students and research personnel throughout the world. The material published is of high quality and relevance, written in a manner which makes it accessible to all of this wide-ranging readership. Preference will be given to papers with implications to the practice of management. Submissions of purely theoretical papers are discouraged. The review of material for publication in the journal reflects this aim.